in the traditional advertising structure, advertisers employ agencies to plan advertising strategy, create content and secure media space according to desired demographics as well as other parameters such as visibility of the media, advertisement content, space of the media etc. Many media companies employ media representatives to extend their geographic sales coverage and client base. In this model, the transactions are finalized prior to delivery and display/airing of the actual advertisements. This model of advertising media transactions has several inefficiencies. For example, the buyers and sellers of advertisements are geographically fragmented, the marketplace is extremely fragmented, the implementation of the transaction is time and labor intensive, the adoption and application of new technologies is slow, there is an inability to track and correlate ad results, there is a large spread between different types of media and prices in different markets, there is an inability to obtain the effectiveness of specific media to specific products at specific times, and there is a lack of flexibility in changing or adopting media buying to market trends and feedback.
Purchasing the right media for an advertising campaign presents a considerable challenge. Most advertisement space media purchasers require substantial future planning and advanced implementation. In addition, determining and designing the right advertising campaign takes years of experience, industry specific expertise, long-term planning and effort, all of which have permitted advertisement agencies to charge 15% or more for media placement services. However, the advent of digital production, delivery and distribution has created new opportunities for a significantly more flexible and liquid advertising marketplace.
The global economy is becoming more and more integrated. As a result, access in real time to the latest relevant information has become critical to doing business. Such information can make the difference between successful companies and unsuccessful companies that lag behind with respect to their ability to react to changes in the marketplace. Presently, the majority of competitive information is delivered by specialty research and financial firms via proprietary subscription to many fragmented networks, such as Bloomberg™ and Reuters™. This information is used primarily by industries, such as the financial markets, which rely on this information. In addition, it is provided without any filtering, and it is up to the user to find relevant data in the vast quantity of publications, such as daily news releases and press announcements.
Out of home advertising has been a growth industry for the past 60 years, and has recently witnessed a surge as businesses spend more in order to attract consumers for their products. Deeper penetration of media, the Internet and the cheap spread of mobile telephony have created more demand for products. Globalization has also blurred borderlines and businesses are now trying to reach consumers across the world. Out of home advertising (or outdoor advertising) is made up of more than 100 formats and essentially any form of advertising focused on consumers who are “on the go” or out of their homes. Television, Internet and print advertising are other forms of advertising which are more “in home” forms of advertising. Outdoor advertising formats fall into five major categories: billboards (hoardings), street furniture, transit, alternative and cinema.
Billboards are large advertising structures typically found in high traffic areas such as in densely populated urban areas and alongside busy roads. They present large advertisements to passing pedestrians and motorists and afford the greatest visibility due not only to their size but because they allow creative advertisements through extensions and embellishments. Billboard advertisements are designed to catch a person's attention and create a memorable impression very quickly, leaving the reader thinking about the advertisement after they have driven past it. They have to be readable in a very short time because they are usually read while being passed at high speeds. They are used for advertising by hundreds of thousands of small businesses as well as multinational brands. They are the predominant form of outdoor advertising worldwide. Traditional billboards employ either painted form of matter or printed panels of flex which are pasted up. Digital billboards more recently have been employed where advertising is created by software with the ability to display dynamic media.
Street furniture is made up of formats such as bus shelters, traffic barriers, traffic signs, street signs, waste receptacles, news racks, mall kiosks, and telephone booth advertising among others. This form of outdoor advertising is mainly seen in urban centers.
Transit advertising is typically advertising placed on anything which moves, such as buses, subway advertising, truck side, and taxis, but also includes fixed static and electronic advertising at train and bus stations and platforms. Airport advertising, which helps businesses address an audience while traveling, is also included in this category.
Alternative advertising includes ads in stadiums, on gas pumps, bike racks, rest areas, and other non-traditional formats. Alternative advertising provides a way to address consumers in places they may not expect.